More often, buyers of real property often zeroed in terms of accessibility, environment, and future growth of their prospective homes. Unfortunately, buyers overlook issues in verifying the authenticity of title, or discovering hidden encumbrances, tax liens, or adverse claims over the title, leading to acquiring a ghost title from fake sellers. So the question is, what shall one do to ensure that their hard-earned money will not go to waste?
This article will help future homeowners protect their real estate investment.
How important is property due diligence?
Property due diligence is a process before one can safely acquire a property to avoid a protracted legal battle, financial loss, and the forfeiture of property rights. Certain precautionary measures and diligence a prospective buyer of titled lands must observe to ensure the legality of the title and the accuracy of the metes and bounds of the lots to be purchased. (Domingo Realty, Inc. v. Court of Appeals, 542 Phil. 39, 2007, and Locsin v. Hizon, 743 Phil. 420, 2014).
How to check if a title is fake?
Property due diligence is a comprehensive verification of the ownership of a prospective seller and involves a determination of potential risks and liabilities involving the property.
As the central repository of all the land titles in the Philippines, the Land Registration Authority (LRA) and the local Registry of Deeds (RD) protect property records by keeping the land title is secured, accurate, and trustworthy. Due to the advancement of technology, sophisticated scams involving counterfeit titles that look identical to genuine documents.
Hence, the buyer has to secure a certified true copy directly from the issuing Registry of Deeds instead of relying solely on the seller's duplicate copy. Thereafter, the title must be checked with adverse claims by third parties asserting a right or interest over the property, notice of a pending case (lis pendens), or a real estate mortgage.
How can unpaid taxes, monthly dues, etc. affect the sale transaction?
Apart from ownership, he has to check the payment of the real property taxes with the local Assessor’s Office of the city or municipality where the property is located. This is to avoid buying a land which can be auctioned off by the local government for unpaid taxes.
With the permission of the prospective seller/s, there must be in inquiry from the courts to check any pending case/s involving the property and/or the seller/s. Finally, if the property is in a subdivision or condo, the homeowners association will have to be consulted if there are no unpaid association dues or rule violations.
For more information, you may reach us through our email address (attynarcisoreyesjr@gmail.com), or call our landline number (049 5011 720), or call our mobile number (0977 318 6192). Our office is located at 3rd Floor, Ventura Center Building, Santa Rosa-Tagaytay Road, Done Jose, Santa Rosa City.